Westmoreland to sell ROVA for US$5 million

Westmoreland Coal has entered into a definitive agreement to sell its Roanoke Valley Power Facility (ROVA) for US$5 million in cash to ROVA Venture LLC.

“In December 2016, we amended our ROVA contract, relieving us from the obligation to operate the plant. This allowed us to more aggressively pursue the sale that we are announcing today. Additionally, we continue to anticipate the return of approximately US$10 million of cash collateral this year related to ROVA power contracts,” said Kevin Paprzycki, Westmoreland’s Chief Executive Officer. “Our team did a great job executing this transaction and maximising the realised value for the asset. This sale and the collateral return are meaningful steps towards our 2017 goals of achieving final resolutions on our two non-core assets and strengthening our balance sheet.”

The closing of the transaction, subject to customary terms and conditions, is expected to occur on or before 30 September 2017. The sale includes all the assets of ROVA. Westmoreland will retain approximately US$2.7 million of reclamation liabilities related to offsite ash storage.